Thursday, June 30, 2011

Papandreou wins second crucial vote

Greece has cleared the way for fresh international financial aid to avert a damaging default after its government won a second, decisive parliamentary vote on implementing sweeping austerity measures.

George Papandreou, socialist prime minister, on Thursday secured approval for fast track implementation of €28bn ($40.6bn) in tax increases and spending cuts demanded by the European Union and International Monetary Fund.

Following Wednesday’s initial vote in favour of the measures, the way is open for payment of €12bn in international aid in July and a deal on a second bail-out plan to replace a €110bn package put in place a year ago.

The government won by 155 votes to 136. A defeat would have revived worries about the stability of the eurozone.

Thursday’s debate took place without a repeat of Wednesday’s violent protests in the Athens streets, which saw stone-throwing demonstrators clash with police firing tear gas, although the police remained on standby for further trouble.

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This blog is dedicated to the understanding of the current Greek (but also European) economic, political and institutional crisis. It was created by Prof. Aristides Hatzis of the University of Athens, after many requests by his students who seek a source of reliable analysis on the Greek current affairs. Its aim is to post commentary and reports published mainly in the major U.S. and European media and to encourage a rigorous discussion.